Diamonds and Dogs
04/24/2012Big Lots Inc. (BIG)
Big Lots got crushed today, down 24.06% at $34.71. Over the past year Big Lots has been rallying nicely, however today the market is correcting the company. Big Lots sales have been significantly hurt, especially in the electronics and food/clothing sectors. The declining sales in these areas are causing investors to worry about whether Big Lots can compete with giants such as Walmart and Costco. Big Lots has stated its first quarter sales are going to be negative, compared to its previous guidance of an increase of 2-4%. Furthermore, numerous analysts downgraded "Big Loss" based on the news provided by the company. Big Lots has found ways to bring low prices to its customers, now it seems to have found a way to bring a low stock price to its investors.
The Hershey Company (HSY)
Hershey is very sweet today, up 5.96% at $66.00. Hershey is seeing gains today based the companies reported first quarter profits, as well as an improved outlook for this year's earnings. Hershey reported first quarter profits up 24% due to a mix of increases in pricing and cost cutting. Net income rose to $198.7 million, which equates to 87 cents per share. The company's revenue was expected by analysts to be $1.66 billion; however the actual revenue was reported higher at $1.73 billion. Hershey also stated that it expected net income for the year to rise10-12%. The amazing earnings report and the news that Hershey has new products that it is planning on releasing has made the company a mouthwatering stock today.